Bitpanda, a European cryptocurrency trading platform, has raised $263 million in a fresh round of funding valuing the company at $4.1 billion. “I don’t like to do fundraising,” Eric Demuth, Bitpanda’s CEO, and co-founder told CNBC. “It’s very time-consuming.”
“When you have partners you have a close connection with, and they have deep pockets, you don’t have to do the whole roadshow,” Demuth said. Valar “wanted to double down and we wanted to stay with them,” he added. “It was quite an easy process.”
British billionaire hedge fund manager Alan Howard and REDO Ventures also invested in Bitpanda’s latest round, along with existing investors LeadBlock Partners and Jump Capital.
“By the end of the year, I think you’ll have a really good offering for stocks,” Demuth said. Demuth said a number of fintech companies are raising money at lofty valuations out of “hype” and a “fear of missing out.”
“I’m very skeptical about this,” he said. “Many companies, especially in the fintech area, are purely based on a combination of hype and growth. But the growth is mostly paid, so you have a product that is for free and you are simply buying your customers.”
More recently, bitcoin and smaller digital coin ether have made a strong comeback, pushing the entire crypto market across the $2 trillion mark for the first time in three months. “From the drafts I’ve seen so far, it looks like it will not have a bad impact,” he said. “Of course, they can always mess it up at the last minute.”
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